As restaurants, pubs and hotels slowly find their way back to pre-COVID trade levels, it’s no exaggeration to say there’s little room for financial mistakes. This makes accounting and financial analysis in the hospitality industry more important than ever. Yet most owners are wearing too many hats to really focus on the financial management side of things. And not using accounting software for hospitality businesses can be a major oversight.
If this applies to you and your business, it’s time to take a look at the way you handle money. So let’s dive in and learn how to spot the warning signs before they ruin your business.
1. Not having an accounting system that works
An accounting system tracks your business activities and their financial impact. Without systems, processes and people to routinely collect all relevant information, it would be impossible to find out how your business is performing and its financial health.
Sometimes businesses have an accounting system, but key components like the Chart of Accounts aren’t configured to reflect their operations or their industry. As a result, transactions aren’t categorised or grouped correctly, meaning you can’t rely on your financial reports for key decisions.
A potential solution is to run your business with a cloud-based accounting system. These days, the use of accounting software for hospitality is common even amongst small business owners. With affordable and flexible cloud-based products like